Railway PSU stock also hit 52-week high of Rs 130.2 per share on BSE.
RVNL stock has rallied 291 per cent in last one year period and analysts suggest investors should avoid investing in it now.
Shares of Rail Vikas Nigam Limited (RVNL) on Thursday closed 0.65 per cent lower at Rs 129.35 on the BSE, snapping three consecutive sessions of gains. The stock hit a 52-week high for the second consecutive day in Thursday’s trade.
The stock surged 5 per cent in early trade to hit a fresh 52-week high of Rs 139.50 per unit on the BSE in intraday trade on Thursday.
Railway PSU shares also hit a 52-week high of Rs 130.2 per share on BSE in Wednesday’s trade.
RVNL shares have gained more than 25 per cent in value in the last one week and more than 71 per cent in the last three months.
Despite the weak market, RVNL shares have given good returns to the investors in the recent weeks. RVNL stock has rallied 291 per cent in last one year period and analysts suggest investors should avoid investing in it now.
Market experts suggest that investors should book profits now and adopt a ‘Buy on Dip’ strategy.
RVNL, the infrastructure arm of Indian Railways, undertakes projects for construction of new lines, doubling of tracks, railway electrification, metro projects, construction of major bridges, workshops, cable stayed bridges and institute buildings.
Analysts suggest that though the stock has given good returns, it has entered an overbought zone which can make the investment risky. There is a strong possibility that the stock will soon see a decline.
Pravesh Gaur, Senior Technical Analyst, Swastik Investmart suggests that investors should adopt a buy on dip strategy for RVNL stock.
According to Jigar S Patel, Senior Manager, Technical Research Analyst, Anand Rathi Shares & Stockbrokers, Rail Vikas Nigam Ltd. stock is not a good buy at current levels. Hence, investors should wait till the stock reaches the price of Rs 90, then this stock can be included in the portfolio for the long term.
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